St Modwen hails record profits as New Covent Garden Market scheme boosts net asset value

Kasmira Jefford
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St Modwen's New Covent Garden Market scheme in Nine Elms
St Modwen posted a 21 per cent surge in net asset value (Nav) in the first half of the year thanks to its New Covent Garden Market scheme in Nine Elms, which achieved unconditional status in April.

The developer reported an Nav per share of 394p after its planned overhaul of the UK’s biggest fruit and vegetable market contributed £128m to a net valuation increase of £170.2m in the period.

Chief executive Bill Oliver said, excluding the scheme, it would still be reporting a record rise in profits of 50 per cent to £75.1m, thanks to strong occupier and investor demand across all of its regions.

“Suddenly there is a level of confidence where people are needing space and I think part of that is to do with the political environment,” chief executive Oliver told City A.M.

“All the uncertainty over the election has gone and interest rates are low. Whether it is homebuyers or businesses, there seems to be a much better outlook from whatever perspective you want to adopt.”

Rental income edged up from £18.5m to £18.6m. This is expected to rise when a superstore is has developed for Marks & Spencer at Longbridge opens in November.

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